WASHINGTON (dpa-AFX) - Supermarket chain Kroger Co. reported Thursday that net profit for the fourth quarter improved from last year, driven by gross margin expansion and higher sales. The company also initiated adjusted earnings guidance for the full-year 2026, with growth seen from last year.
In Thursday's pre-market trading, KR is trading on the NYSE at $67.34, down $0.63 or 0.93 percent.
CEO Greg Foran said, 'Kroger delivered a strong finish to the year, with improving market share trends and solid sales growth that reflect meaningful progress strengthening the business.'
For the fourth quarter, net earnings attributable to the company increased to $861 million or $1.35 per share from $634 million or $0.90 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $812 million or $1.28 per share, compared to $800 million or $1.14 per share in the year-ago quarter.
Operating profit was $1.25 billion or 3.6 percent margin, compared to prior year's $912 million or 2.7 percent margin.
Total company sales for the quarter edged up to $34.73 billion from $34.31 billion in the same quarter last year. Excluding fuel, sales increased 2.1 percent compared to the same period last year.
Identical sales growth for the fourth quarter, without fuel, increased 2.4 percent to $31.12 billion.
Gross margin for the quarter expanded 40 basis points to 23.1 percent, driven primarily by sourcing improvements, lower supply chain costs, better fuel margins, decreased depreciation, and lower shrink.
'We have the right foundation in place, and I'm focused on making it even stronger by delivering more value to customers, improving the customer experience in stores and online, and driving cost savings and productivity to fund our growth,' added Foran.
Looking ahead to fiscal 2026, the company now projects adjusted earnings in a range of $5.10 to $5.30 per share on total identical sales growth, without fuel, of 1.0 to 2.0 percent.
The identical sales, without fuel, guidance includes an approximately 130 basis point headwind from the Inflation Reduction Act.
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